F_MAIN_in5 - FIN350 In-class-work 5 First Name Last Name 1...

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FIN350 In-class-work 5 First Name________ Last Name_______ 1. A cost that has already been paid, or the liability to pay has already been incurred, is a(n): a. Salvage value expense. b. Net working capital expense. c. Sunk cost. d. Opportunity cost. 2. A project's payback period is determined to be four years. If it is later discovered that additional cash flows will be generated in years five and six, then: a. the project's payback period will be reduced. b. the project's payback period will be increased. c. the project's payback period will not change. d. the discount rate must be known to determine whether the payback period changes. 3. If two projects are mutually exclusive, then: a. Accepting one automatically implies rejection of the other. b. If one is undertaken, the other must be undertaken as well. c. Both will be undertaken, assuming each has a positive NPV and the firm’s capital budget can afford to include both projects. d.
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This note was uploaded on 05/06/2010 for the course BUS 5231 taught by Professor Na during the Spring '10 term at University of West Alabama-Livingston.

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F_MAIN_in5 - FIN350 In-class-work 5 First Name Last Name 1...

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